Kenvue Inc. (KVUE)
Current ratio
| Dec 31, 2023 | Sep 30, 2023 | Jun 30, 2023 | Mar 31, 2023 | ||
|---|---|---|---|---|---|
| Total current assets | US$ in thousands | 6,138,000 | 5,894,000 | 6,219,000 | 6,439,000 |
| Total current liabilities | US$ in thousands | 5,481,000 | 5,161,000 | 5,299,000 | 4,210,000 |
| Current ratio | 1.12 | 1.14 | 1.17 | 1.53 |
December 31, 2023 calculation
Current ratio = Total current assets ÷ Total current liabilities
= $6,138,000K ÷ $5,481,000K
= 1.12
The current ratio of Kenvue Inc. has shown a decreasing trend over the past four quarters. Starting at 1.53 on March 31, 2023, the current ratio declined to 1.17 by June 30, 2023, and further to 1.14 by September 30, 2023, and ultimately reaching 1.12 by December 31, 2023.
A current ratio above 1 indicates that the company has more current assets than current liabilities to meet its short-term obligations. While the current ratio of Kenvue Inc. has been consistently above 1, the decreasing trend may indicate challenges in managing its short-term liquidity.
It is essential to investigate the reasons behind this decline in the current ratio to determine if the company is efficiently managing its current assets and liabilities. Further analysis of the components of current assets and liabilities, such as cash, accounts receivable, accounts payable, and short-term debt, would provide more insights into the financial health and liquidity position of Kenvue Inc.
Peer comparison
Dec 31, 2023